Hydrodec Share Discussion Threads

[the shuffle man] 19/12/2012 07:34

£5m funding gap mentioned in latest research now sorted.A Black in big time. I reckon he thinks he can make more money here than he did at betfair.It's starting to look very promising now.Onwards and upwards. Enjoy the ride.

[capricious] 18/12/2012 12:40

Some tick up on the spread, lets see whats coming through... as there isn't a lot to report, I've resorted to posting the smallest morsels.

[capricious] 18/12/2012 10:54

I think Stevedd mentioned this, but the joint venture would be based on EBITDA, since this is negative, some variation must be used.

As it is a minority stake, then it could be more towards actual sales, with this playing a role in the earnout clause.

I'd like to see how it's structured bearing in mind we have assets in Australia, and possibly Japan. As with companies I've worked for that gain a large interested partner, the party plays the long game, with operating success I'd bet that after 3-5 years, there are moves for the remaining stakes.

[capricious] 16/12/2012 14:13

I'm still very surprised that the recent progress (jv, industrial oils, export deals etc) hasn't moved the share price more. Not withstanding the often tight range, it leads me to wonder more so that the price is factoring in a larger impact on current holders. Of course it's not a done deal so that could be the caution exhibited.

It's almost 2013, and not a hint about Japan. I'd think that it's time for some frank news on the reasons for the stasis, but the NDA probably prevents such things. I hope that the agreement has a deadline or expiry on certain phases, as without one you're held hostage.

[sueyou1] 13/12/2012 16:43

I did say motor oils a while back! A $20Bn market on top of industrial oils!!

"The global market for naphthenic transformer oil sales is estimated at approximately US$1.5 billion per annum; the market for industrial oil sales is approximately US$8 billion per annum and for engine oil sales is approximately US$20 billion per annum."

[capricious] 13/12/2012 10:18

I wonder if the process is confined to Group II baseoils, or whether that was simply the initial proof of concept.

Group III and above are now commonly used as auto oils, as they offer better performance.

Looking at the refining process, above group III might not be compatible with Hydrodec's re-refining, but that is a guess at best. The higher viscosity Group II oils offer a good price point. Constructing a pilot plant sounds very encouraging. We were told that we would get the results of the test before EOY, and they have delivered.

The speed of development and interest level, attests to the attractiveness of the prospect. Having announced the possible joint venture with a large US based third party, it can only help Hydrodec's credibility for other industry partners.

[capricious] 13/12/2012 09:39

Lol, that's the thing with Hydrodec, no matter the good news or obvious potential, the share price is kept with a tight rein.

I expect we need more details on the joint venture, as yet it could be really good or really bad for current holders.

[copestake] 13/12/2012 09:28

Looks like we're in reverse!

[dirty75] 13/12/2012 08:24

Gets us out of first gear

[dirty75] 13/12/2012 08:24

Gets us out of first gear

[the shuffle man] 13/12/2012 08:02

Like the pun VIT.

It they can refine used engine oil the market would be huge.

[vitamal] 13/12/2012 07:58

Time to motor

[capricious] 11/12/2012 17:43

Assuming it's a deal involving share ownership, how is it most likely to proceed, e.g the addition of new shares or those already in circulation or combination?

So far there is a tepid market response.

[capricious] 03/12/2012 16:27

Thanks Wes1, for some reason I didn't see that link until now

[capricious] 03/12/2012 16:20

Although I don't rate Obama, least of which is he spin over substance, and anyone who wants to follow the European route is a sandwich sort of a picnic, but his re-election may have helped a little with the latest news. He's more likely to impose heavy costs on business with regards to Co2 etc.

[capricious] 03/12/2012 09:37

Is it possible the deal is done on owning volume/capacity, rather than taking shares?

If it's a utility using it to gain a very valuable advantage on obtaining transformer oils in a potentially closed loop supply scenario, i can see the third party being more interested in actual capacity, and not a fluctuating share price

I may be far off the mark, but the venture mentions the required extra capacity and loading trains.

[wes1] 03/12/2012 09:34

audio interview with Ian Smale "First step towards US strategic relationship"
1/12/2012

[spike_1] 30/11/2012 13:28

Cope: my guess would be either too illiquid for them to electronically hedge, or too heavy trading to provide a price, or too close to their max limit (% of any one co').
I tried first thing to buy lots of 25k through TD (not spread bets) and each time I accepted the price offered, the trade failed (eight times). It was only when the price stabilised at 13 that I was able to buy.

[copestake] 30/11/2012 11:52

Why are spread betting firms phone only?

[stevedd] 30/11/2012 11:18

Just reading the release again, where it mentions that they will pay a factor of the EBITDA, it says it is a factor of EBITDA of the US business rather than the whole company. I assume this would then exclude at least some of central costs? I assume it must do otherwise a factor of a loss would mean Hydrodec giving them cash to take some ownership.

[capricious] 30/11/2012 09:08

Thanks for the link.

[capricious] 30/11/2012 09:05

True.

I now also understand the price action before the CULs cutoff date. Surely there would've been some work towards a potential link up, if not with any details or beyond networking, some time before Nov.

[the shuffle man] 30/11/2012 08:44

Cap

With management owning quite a few shares, especially Bertie Black, i would hope they are looking out for all shareholders.

[the shuffle man] 30/11/2012 08:40

This just out